Research firm International Data Corporation (IDC), in a recent report, predicted that 10% of Chinese cities would adopt local blockchain-based digital currencies by 2023.
The report titled IDC FutureScape: Worldwide Blockchain 2020 Predictions — China Implications, discusses the top 10 blockchain predictions, and their implications for China.
China is leading in the blockchain space and is likely to be the first country to release a central bank digital currency (CBDC). Support from President Xi Jinping has bolstered the sector, with the country the most prolific applicant for global blockchain patents.
IDC said that Chinese companies will invest $2.7 billion in blockchain services by 2023. A few months ago, IDC forecast China’s enterprise blockchain spending would hit $2 billion in 2023.
In the recent report, IDC sees 40% of Chinese financial institutions moving from SWIFT and central bank infrastructure to blockchain networks for cross border payments by 2023. IDC previously predicted that trade finance would be the most significant blockchain application in China. A few months ago, Ledger Insights reported that China’s big three blockchain trade finance projects hit $63 billion in volume.
While cross-border payments are significantly dependent on trade, IDC believes 85% of China’s container shipping will be tracked using blockchain by 2024. Half of these will utilize blockchain cross-border payments.
Coming to governance, IDC sees blockchain voting systems being implemented in 5% of China’s jurisdictions by 2023. A few internet courts in China are currently using blockchain evidencing, and have even passed judgments. Copyright management is also being trialed in the country at the moment, and IDC sees 20% of digital rights being processed on a blockchain by 2023.
Another popular use case is healthcare credentialing. IDC believes about 10% of China’s healthcare institutions will use standardized blockchain certification in public services by 2021. China’s Zhejiang province has developed a blockchain medical billing platform, which has sped up insurance payments as well.
Among other things, IDC believes by 2020, 90% of organizations in China will use a blockchain-as-a-service platform for implementing blockchain applications.